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Divergence

This document defines the inputs and logic for an indicator that identifies divergences between price action and technical indicators on a chart. It calculates multiple technical indicators on the given timeframe, tracks pivot highs and lows, and contains functions to check for regular and hidden divergences across the indicators and price values. The results are returned in an array containing the lengths of any found divergences between the indicators and prices.

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0% found this document useful (0 votes)
47 views7 pages

Divergence

This document defines the inputs and logic for an indicator that identifies divergences between price action and technical indicators on a chart. It calculates multiple technical indicators on the given timeframe, tracks pivot highs and lows, and contains functions to check for regular and hidden divergences across the indicators and price values. The results are returned in an array containing the lengths of any found divergences between the indicators and prices.

Uploaded by

Bipin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as TXT, PDF, TXT or read online on Scribd
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//////////////////////////////////

/// divergence 30 min


//////////////////////////////////
divtf = input.string("",title = "divergence timeframe")
[open1,high1,low1,close1,obv1,volume1] = request.security(syminfo.tickerid, divtf,
[open,high,low,close,ta.obv,volume], barmerge.gaps_off, barmerge.lookahead_off)
prd = input.int(defval=1, title='Pivot Period', minval=1, maxval=50)
source = input.string(defval='Close', title='Source for Pivot Points',
options=['Close', 'High/Low'])
searchdiv = input.string(defval='Regular/Hidden', title='Divergence Type',
options=['Regular', 'Hidden', 'Regular/Hidden'])
showindis = input.string(defval='First Letter', title='Show Indicator Names',
options=['Full', 'First Letter', 'Don\'t Show'])
showlimit = input.int(1, title='Minimum Number of Divergence', minval=1, maxval=11)
maxpp = input.int(defval=10, title='Maximum Pivot Points to Check', minval=1,
maxval=20)
maxbars = input.int(defval=200, title='Maximum Bars to Check', minval=5,
maxval=200)
shownum = true
showlast = false
dontconfirm = false
showlines = false
showpivot = false
calcmacd = input(defval=false, title='MACD')
calcmacda = input(defval=false, title='MACD Histogram')
calcrsi = input(defval=true, title='RSI')
calcstoc = input(defval=true, title='Stochastic')
calccci = input(defval=false, title='CCI')
calcmom = input(defval=false, title='Momentum')
calcobv = input(defval=false, title='OBV')
calcvwmacd = input(true, title='VWmacd')
calccmf = input(false, title='Chaikin Money Flow')
calcmfi = input(false, title='Money Flow Index')
calcext = input(false, title='Check External Indicator')
externalindi = input(defval=close, title='External Indicator')
pos_reg_div_col = input(defval=color.yellow, title='Positive Regular Divergence')
neg_reg_div_col = input(defval=color.navy, title='Negative Regular Divergence')
pos_hid_div_col = input(defval=color.green, title='Positive Hidden Divergence')
neg_hid_div_col = input(defval=color.red, title='Negative Hidden Divergence')
pos_div_text_col = input(defval=color.rgb(6, 6, 6), title='Positive Divergence Text
Color')
neg_div_text_col = input(defval=color.white, title='Negative Divergence Text
Color')
reg_div_l_style_ = "Solid"
hid_div_l_style_ = "Dashed"
reg_div_l_width = 2
hid_div_l_width = 1

// set line styles


var reg_div_l_style = reg_div_l_style_ == 'Solid' ? line.style_solid :
reg_div_l_style_ == 'Dashed' ? line.style_dashed : line.style_dotted
var hid_div_l_style = hid_div_l_style_ == 'Solid' ? line.style_solid :
hid_div_l_style_ == 'Dashed' ? line.style_dashed : line.style_dotted

// get indicators
rsiin = 14
stochin = 14
stochsmain = 3
mfiin = 14
cciin = 10
momein = 10
macdin = 12
macdsigin = 26
macddelin = 9
cmfin = 21
cmfsmain = 21
rsi = ta.rsi(close1, rsiin) // RSI
[macd, signal, deltamacd] = ta.macd(close1, macdin, macdsigin, macddelin) // MACD
moment = ta.mom(close1, momein) // Momentum
cci = ta.cci(close1, cciin) // CCI
Obv = obv1 // OBV
stk = ta.sma(ta.stoch(close1, high1, low1, stochin), stochsmain) // Stoch
vmacfastin = 26
vmacslowin = 55
maFast = ta.vwma(close1, vmacfastin) // volume weighted macd
maSlow = ta.vwma(close1, vmacslowin)
vwmacd = maFast - maSlow
Cmfm = (close1 - low1 - (high1 - close1)) / (high1 - low1) // Chaikin money flow
Cmfv = Cmfm * volume1
cmf = ta.sma(Cmfv, cmfin) / ta.sma(volume1, cmfsmain)
Mfi = ta.mfi(close1, mfiin) // Moneyt Flow Index

// keep indicators names and colors in arrays


var indicators_name = array.new_string(11)
var div_colors = array.new_color(4)
if barstate.isfirst
// names
array.set(indicators_name, 0, showindis == 'Full' ? 'MACD' : 'M')
array.set(indicators_name, 1, showindis == 'Full' ? 'Hist' : 'H')
array.set(indicators_name, 2, showindis == 'Full' ? 'RSI' : 'E')
array.set(indicators_name, 3, showindis == 'Full' ? 'Stoch' : 'S')
array.set(indicators_name, 4, showindis == 'Full' ? 'CCI' : 'C')
array.set(indicators_name, 5, showindis == 'Full' ? 'MOM' : 'M')
array.set(indicators_name, 6, showindis == 'Full' ? 'OBV' : 'O')
array.set(indicators_name, 7, showindis == 'Full' ? 'VWMACD' : 'V')
array.set(indicators_name, 8, showindis == 'Full' ? 'CMF' : 'C')
array.set(indicators_name, 9, showindis == 'Full' ? 'MFI' : 'M')
array.set(indicators_name, 10, showindis == 'Full' ? 'Extrn' : 'X')
//colors
array.set(div_colors, 0, pos_reg_div_col)
array.set(div_colors, 1, neg_reg_div_col)
array.set(div_colors, 2, pos_hid_div_col)
array.set(div_colors, 3, neg_hid_div_col)

// Check if we get new Pivot High Or Pivot Low


float ph = ta.pivothigh(source == 'Close' ? close1 : high1, prd, prd)
float pl = ta.pivotlow(source == 'Close' ? close1 : low1, prd, prd)
//plotshape(ph and showpivot, text='H', style=shape.labeldown,
color=color.new(color.white, 100), textcolor=color.new(color.red, 0),
location=location.abovebar, offset=-prd)
//plotshape(pl and showpivot, text='L', style=shape.labelup,
color=color.new(color.white, 100), textcolor=color.new(color.lime, 0),
location=location.belowbar, offset=-prd)

// keep values and positions of Pivot Highs/Lows in the arrays


var int maxarraysize = 20
var ph_positions = array.new_int(maxarraysize, 0)
var pl_positions = array.new_int(maxarraysize, 0)
var ph_vals = array.new_float(maxarraysize, 0.)
var pl_vals = array.new_float(maxarraysize, 0.)

// add PHs to the array


if ph
array.unshift(ph_positions, bar_index)
array.unshift(ph_vals, ph)
if array.size(ph_positions) > maxarraysize
array.pop(ph_positions)
array.pop(ph_vals)

// add PLs to the array


if pl
array.unshift(pl_positions, bar_index)
array.unshift(pl_vals, pl)
if array.size(pl_positions) > maxarraysize
array.pop(pl_positions)
array.pop(pl_vals)

// functions to check Regular Divergences and Hidden Divergences

// function to check positive regular or negative hidden divergence


// cond == 1 => positive_regular, cond == 2=> negative_hidden
positive_regular_positive_hidden_divergence(src, cond) =>
divlen = 0
prsc = source == 'Close' ? close1 : low1
// if indicators higher than last value and close price is higher than las
close
if dontconfirm or src > src[1] or close1 > close1[1]
startpoint = dontconfirm ? 0 : 1 // don't check last candle
// we search last 15 PPs
for x = 0 to maxpp - 1 by 1
len = bar_index - array.get(pl_positions, x) + prd
// if we reach non valued array element or arrived 101. or previous
bars then we don't search more
if array.get(pl_positions, x) == 0 or len > maxbars
break
if len > 5 and (cond == 1 and src[startpoint] > src[len] and
prsc[startpoint] < nz(array.get(pl_vals, x)) or cond == 2 and src[startpoint] <
src[len] and prsc[startpoint] > nz(array.get(pl_vals, x)))
slope1 = (src[startpoint] - src[len]) / (len - startpoint)
virtual_line1 = src[startpoint] - slope1
slope2 = (close1[startpoint] - close1[len]) / (len - startpoint)
virtual_line2 = close1[startpoint] - slope2
arrived = true
for y = 1 + startpoint to len - 1 by 1
if src[y] < virtual_line1 or nz(close1[y]) < virtual_line2
arrived := false
break
virtual_line1 -= slope1
virtual_line2 -= slope2
virtual_line2

if arrived
divlen := len
break
divlen
// function to check negative regular or positive hidden divergence
// cond == 1 => negative_regular, cond == 2=> positive_hidden
negative_regular_negative_hidden_divergence(src, cond) =>
divlen = 0
prsc = source == 'Close' ? close1 : high1
// if indicators higher than last value and close price is higher than las
close
if dontconfirm or src < src[1] or close1 < close1[1]
startpoint = dontconfirm ? 0 : 1 // don't check last candle
// we search last 15 PPs
for x = 0 to maxpp - 1 by 1
len = bar_index - array.get(ph_positions, x) + prd
// if we reach non valued array element or arrived 101. or previous
bars then we don't search more
if array.get(ph_positions, x) == 0 or len > maxbars
break
if len > 5 and (cond == 1 and src[startpoint] < src[len] and
prsc[startpoint] > nz(array.get(ph_vals, x)) or cond == 2 and src[startpoint] >
src[len] and prsc[startpoint] < nz(array.get(ph_vals, x)))
slope1 = (src[startpoint] - src[len]) / (len - startpoint)
virtual_line1 = src[startpoint] - slope1
slope2 = (close1[startpoint] - nz(close1[len])) / (len -
startpoint)
virtual_line2 = close1[startpoint] - slope2
arrived = true
for y = 1 + startpoint to len - 1 by 1
if src[y] > virtual_line1 or nz(close1[y]) > virtual_line2
arrived := false
break
virtual_line1 -= slope1
virtual_line2 -= slope2
virtual_line2

if arrived
divlen := len
break
divlen

// calculate 4 types of divergence if enabled in the options and return divergences


in an array
calculate_divs(cond, indicator_1) =>
divs = array.new_int(4, 0)
array.set(divs, 0, cond and (searchdiv == 'Regular' or searchdiv ==
'Regular/Hidden') ? positive_regular_positive_hidden_divergence(indicator_1, 1) :
0)
array.set(divs, 1, cond and (searchdiv == 'Regular' or searchdiv ==
'Regular/Hidden') ? negative_regular_negative_hidden_divergence(indicator_1, 1) :
0)
array.set(divs, 2, cond and (searchdiv == 'Hidden' or searchdiv ==
'Regular/Hidden') ? positive_regular_positive_hidden_divergence(indicator_1, 2) :
0)
array.set(divs, 3, cond and (searchdiv == 'Hidden' or searchdiv ==
'Regular/Hidden') ? negative_regular_negative_hidden_divergence(indicator_1, 2) :
0)
divs

// array to keep all divergences


var all_divergences = array.new_int(44) // 11 indicators * 4 divergence = 44
elements
// set related array elements
array_set_divs(div_pointer, index) =>
for x = 0 to 3 by 1
array.set(all_divergences, index * 4 + x, array.get(div_pointer, x))

// set divergences array


array_set_divs(calculate_divs(calcmacd, macd), 0)
array_set_divs(calculate_divs(calcmacda, deltamacd), 1)
array_set_divs(calculate_divs(calcrsi, rsi), 2)
array_set_divs(calculate_divs(calcstoc, stk), 3)
array_set_divs(calculate_divs(calccci, cci), 4)
array_set_divs(calculate_divs(calcmom, moment), 5)
array_set_divs(calculate_divs(calcobv, Obv), 6)
array_set_divs(calculate_divs(calcvwmacd, vwmacd), 7)
array_set_divs(calculate_divs(calccmf, cmf), 8)
array_set_divs(calculate_divs(calcmfi, Mfi), 9)
array_set_divs(calculate_divs(calcext, externalindi), 10)

// check minimum number of divergence, if less than showlimit then delete all
divergence
total_div = 0
for x = 0 to array.size(all_divergences) - 1 by 1
total_div += math.round(math.sign(array.get(all_divergences, x)))
total_div

if total_div < showlimit


array.fill(all_divergences, 0)

// keep line in an array


var pos_div_lines = array.new_line(0)
var neg_div_lines = array.new_line(0)
var pos_div_labels = array.new_label(0)
var neg_div_labels = array.new_label(0)

// variables for Alerts


pos_reg_div_detected = false
neg_reg_div_detected = false
pos_hid_div_detected = false
neg_hid_div_detected = false

// to remove lines/labels until we met new // PH/PL


var last_pos_div_lines = 0
var last_neg_div_lines = 0
var remove_last_pos_divs = false
var remove_last_neg_divs = false
if pl
remove_last_pos_divs := false
last_pos_div_lines := 0
last_pos_div_lines
if ph
remove_last_neg_divs := false
last_neg_div_lines := 0
last_neg_div_lines

// draw divergences lines and labels


divergence_text_top = ''
divergence_text_bottom = ''
distances = array.new_int(0)
dnumdiv_top = 0
dnumdiv_bottom = 0
top_label_col = color.white
bottom_label_col = color.white
old_pos_divs_can_be_removed = true
old_neg_divs_can_be_removed = true
startpoint = dontconfirm ? 0 : 1 // used for don't confirm option

for x = 0 to 10 by 1
div_type = -1
for y = 0 to 3 by 1
if array.get(all_divergences, x * 4 + y) > 0 // any divergence?
div_type := y
if y % 2 == 1
dnumdiv_top += 1
top_label_col := array.get(div_colors, y)
top_label_col
if y % 2 == 0
dnumdiv_bottom += 1
bottom_label_col := array.get(div_colors, y)
bottom_label_col
if not array.includes(distances, array.get(all_divergences, x * 4 + y))
// line not exist ?
array.push(distances, array.get(all_divergences, x * 4 + y))

// set variables for alerts


if y == 0
pos_reg_div_detected := true
pos_reg_div_detected
if y == 1
neg_reg_div_detected := true
neg_reg_div_detected
if y == 2
pos_hid_div_detected := true
pos_hid_div_detected
if y == 3
neg_hid_div_detected := true
neg_hid_div_detected

// get text for labels


if div_type >= 0
divergence_text_top += (div_type % 2 == 1 ? showindis != 'Don\'t Show' ?
array.get(indicators_name, x) + '\n' : '' : '')
divergence_text_bottom += (div_type % 2 == 0 ? showindis != 'Don\'t Show' ?
array.get(indicators_name, x) + '\n' : '' : '')
divergence_text_bottom

// draw labels
if showindis != 'Don\'t Show' or shownum
if shownum and dnumdiv_top > 0
divergence_text_top += str.tostring(dnumdiv_top)
divergence_text_top
if shownum and dnumdiv_bottom > 0
divergence_text_bottom += str.tostring(dnumdiv_bottom)
divergence_text_bottom
if divergence_text_top != ''

array.push(neg_div_labels, label.new(x=bar_index, y=math.max(high,


high[1]), text=divergence_text_top, color=top_label_col,
textcolor=neg_div_text_col, style=label.style_label_down, size=size.tiny))

if divergence_text_bottom != ''

array.push(pos_div_labels, label.new(x=bar_index, y=math.min(low, low[1]),


text=divergence_text_bottom, color=bottom_label_col, textcolor=pos_div_text_col,
style=label.style_label_up, size=size.tiny))

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